NIO, XPeng, and Li Auto Post Record EV Deliveries. Why the Stocks Are Falling

The Chinese electric vehicle (EV) market continues to break records, with NIO, XPeng, and Li Auto reporting impressive sales figures for the month. However, despite these positive numbers, the stocks of these companies have seen a decline in value.

NIO, a leading Chinese EV manufacturer, delivered a record 24,558 vehicles in December 2023. This represents a 112.2% year-over-year increase and surpasses the previous record of 21,527 vehicles delivered in November 2023. The company’s stock price, however, has dropped by over 10% since the beginning of the year.

XPeng, another major Chinese EV player, reported a record 18,311 deliveries in December 2023, marking a 152.3% year-over-year increase. This figure surpasses the previous record of 15,205 vehicles delivered in November 2023. Despite these impressive numbers, XPeng’s stock price has also declined by over 10% since the beginning of the year.

Li Auto, a Chinese EV company that focuses on producing vehicles with extended-range electric technology, reported a record 12,585 deliveries in December 2023. This represents a 122.3% year-over-year increase and surpasses the previous record of 10,600 vehicles delivered in November 2023. Similar to NIO and XPeng, Li Auto’s stock price has also experienced a decline, dropping by over 10% since the beginning of the year.

Despite the record-breaking sales figures, the stocks of these Chinese EV companies have seen a decline in value. There are several potential reasons for this trend. One possibility is that investors are concerned about the companies’ profitability, as they continue to invest heavily in research and development and expand their production capacity. Another possibility is that investors are taking profits after the strong rally in the stocks during the second half of 2023. Additionally, there may be concerns about the overall economic environment in China and its impact on consumer demand for EVs.

In conclusion, the Chinese EV market continues to set new sales records, with NIO, XPeng, and Li Auto all reporting impressive figures for December 2023. However, despite these positive numbers, the stocks of these companies have seen a decline in value. There are several potential reasons for this trend, including concerns about profitability, profit-taking, and the overall economic environment in China.